Throughout Covid-19, we’ve witnessed a systematic shift in how we access care. Care is no longer defined by the four walls of a hospital, doctor’s office, or urgent care center. There’s been an emergence of new care delivery models that enable consumers to access care more conveniently. This includes the now widely publicized access to anytime, anywhere care virtually via telehealth, with use exploding over the course of the pandemic. Yet most interesting might be the emergence of options for consumers to access care locally in non-traditional settings, such as pharmacies or retail stores.
In the past, consumers went to pharmacies and retail stores to shop for goods – groceries, electronics, and more. Today, these settings are quickly becoming complete health hubs. Pharmacies are increasing on-site care capabilities and consumer retail players are rapidly expanding into healthcare. Walgreens plans to open 160 primary care practices by the end of 2022, and CVS Health is hoping to advance their care delivery strategy in the coming months by moving into primary care. Additionally, Walmart, recently partnered with Transcarent, a new and different health and care experience company, as a go-to-market partner for self-insured employers across the country, one if its many moves into healthcare. Other consumer retail companies including, Best Buy and Dollar General are also putting a stake into the healthcare delivery ground.
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Alyssa Jaffee Alyssa Jaffee is a Partner at 7wireVentures, where she focuses on investments in digital healthcare and technology-enabled services that empower consumers to be better stewards of their health in today’s changing healthcare ecosystem. Alyssa sits on the board of Caraway and Ayogo Health and is a board observer with Zerigo Health, NOCD, Jasper […]
While retailers have become some of the most unlikely of sources to help solve the magnitude of challenges plaguing healthcare today – access to care, provider shortages, and chronic care management, to name a few — they are actually prime health hubs. With footprints in local communities across the country, retailers have the food, the medicine, the pharmacist and now even the access to local and convenient care consumers need. CVS has nearly 10,000 stores nationwide, with about 4.5 million consumers visiting those stores each day. Most Americans live within 10 miles of a Walmart and 65% of Dollar General stores are in health deserts, areas where access to local health care is limited for many consumers.
Better yet, with the primary grocery shopper in U.S. households visiting the grocery store more than once a week and nearly half of consumers using at least one prescription drug, increased presence of healthcare resources at retail shops and pharmacies can help drive more frequent touchpoints with clinical teams. As we continue to see such a shift in care delivery unfold, more and more consumers can be armed with the resources needed to be better stewards of their own health– whether it be via reminders for preventative care screenings or regular management of chronic conditions.
While there is plenty of optimism around the opportunities retail and pharmacy companies offer for increasing access to convenient and affordable care, they can’t do it alone. The hurdles and failures of big tech companies across the space demonstrate how hard it is to create lasting change in healthcare. As these players look to enter healthcare, they should not overlook the value that can come from partnering with innovative digital health solutions that bring healthcare experience and expertise. A few opportunities for partnership include:
Tapping into existing provider networks
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
While standing up local clinics is a critical step to increasing access to care, the ongoing (and mounting) provider shortage makes it difficult to find clinical support. Not only that, but the costs associated with recruiting, training, and scaling a clinical team from the ground up can be significant.
Instead of standing up clinics that require separate resources, retail and pharmacy companies can look to strategically partner with digital health companies with networks that already exist. Take VillageMD and Walgreens. The two companies have more than 50 co-branded primary care practice locations across the country which leverage local clinical teams, powered by VillageMD, to provide community-based care.
Retail and pharmacy players can also provide on-demand healthcare by partnering with digital health companies that specifically target underserved communities, such as CityBlock Health, Waymark or Oak Street Health. Other opportunities exist for partnership with companies, such as MedArrive, that are creatively thinking about staffing. The company leverages a nationwide network of EMTs, Paramedics, RNs, NPs, and Community Health Workers to bring affordable at-home care to vulnerable populations across the country.
Expanding offerings beyond primary and urgent care to specialty condition management
Much of the activity by retail and pharmacy players has been focused on primary or urgent care. However, given the rise in chronic conditions, there are vast (and much needed) opportunities for these players to promote specialty condition management more broadly. This is especially crucial in rural areas where access to specialists is few and far between.
Instead of standing up their own offerings, retail and pharmacy players can look to partner with digital health companies that specialize in a specific subset of care. Companies like Brightline, NOCD, Hurdle, Uwill, or Brightside can bring much needed behavioral health care to consumers across the country. Companies like Jasper Health, Carrot Fertility, or Papa, can support consumers, their caregivers, and even providers in navigating complicated healthcare experiences..
Creating ubiquity in healthcare
Just like many retail players enhanced their online purchasing offerings over the past two years, there are vast opportunities for retail and pharmacy players to expand beyond in-person healthcare experiences. Partnerships with tech-enabled care delivery solutions can help bridge in-person, remote, and virtual care experiences.
For example, Higi, which was recently acquired by Babylon, provides health station kiosks for supermarkets, pharmacies, and other retail locations. With Higi, consumers can access and address their healthcare needs while shopping for groceries or picking up a prescription. Text-first virtual care providers like CirrusMD can help keep consumers connected with their care teams from home – ensuring 24/7 support regardless of where one may be. Further, at-home diagnostic companies like Everlywell make access to a range of critical lab tests and personal health education much more convenient for consumers.
The entrance of retail and pharmacy players into healthcare offers vast opportunity for improvements to today’s status quo. These companies have only scratched the surface on the opportunities that exist to effect change across healthcare. As retailers and pharmacies transition their healthcare strategies, partnerships with digital health solutions can help companies more quickly realize impact across healthcare, effectively drive better outcomes, and empower consumers to be informed healthcare consumers.
Editor’s Note: The author holds a board observer role at Jasper Health, NOCD and Brightline, portfolio companies of 7wireVentures, the author’s employer. Separately, Transcarent and CirrusMD are 7wireVentures portfolio companies and Higi was a former portfolio company.
Alyssa Jaffee is a Partner at 7wireVentures, where she focuses on investments in digital healthcare and technology-enabled services that empower consumers to be better stewards of their health in today’s changing healthcare ecosystem. Alyssa sits on the board of Caraway and Ayogo Health and is a board observer with Zerigo Health, NOCD, Jasper Health, and Brightline, and MedArrive.
Alyssa's prior experience in venture capital includes her time as an investor at Pritzker Group Venture Capital where she led investments in Bright.md and Tovala as well as worked closely with Apervita, Mingle Health, and AiCure. Additionally, she worked at Hyde Park Angels (HPA), one of the Midwest's largest angel organizations and Healthbox, an early-stage healthcare innovation firm, supporting their accelerator program called the Studio. Alyssa is also a Co-Founder of TransparentCareer, a 2016 NVC winning company focused on helping people make more data-driven career decisions.
Prior to business school, Alyssa worked as the Senior Director of Performance Technologies for the Advisory Board Company. There, Alyssa was charged with expanding new business through the sales of technology platforms. With an extensive travel regimen, Alyssa met with hundreds of hospital executive teams to understand their strategic needs and recommend various solutions. She has copious amounts of experience in launching new products and thinking about go-to-market strategies.
Alyssa holds a bachelor’s degree in Marketing and Spanish from the University of Wisconsin-Madison and an M.B.A. from the University of Chicago – Booth School of Business. Her work and accomplishments have been featured in Fortune, Stat News, MedCity News, Crain’s, and more.
